Re: [CANSLIM] Wedging example: CECO

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Wedging example: CECO
Date: Thu, 5 Sep 2002 09:41:34 -0500

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Here's a good wedging example:
http://WallStreet-LLC.com/canslim/PHA090402.jpg

- ----- Original Message -----
From: "Katherine Malm" <kmalm@earthlink.net>
To: <canslim@lists.xmission.com>
Sent: Thursday, September 05, 2002 9:37 AM
Subject: Re: [CANSLIM] Wedging example: CECO

| Hi Kelly,
|
| For the most part, the action on the right side of CECO's "V" cup was
| wedging, just as you noted. You had to pick the toughest chart in the
| *universe* though.... Prior to that sudden V-cup, the basing action was
| actually constructive. Since then, it's pretty much a nightmare of
activity
| and very difficult to read. The first area you marked as a pivot is iffy
for
| 2 reasons. First, the base, having been so deep, has to be at least 6
weeks
| in length to be valid. That means the earliest a valid pivot could form
| would be about 8/2. You can see the action there is a little suspect,
| forming a sloppy handle at best. In the handle itself, you actually want
to
| see volume dry up, but the problem is that this stock took a big plunge at
| the start of the handle. One could certainly argue that the handle "moved
| sideways" but I'd be disinclined to do so because of the wedging action to
| get there.  That, combined with a very low volume breakout attempt on 8/15
| just seals the deal...this stock didn't want to go *anywhere.* I'll bet
the
| strong action in the group has had more to do with it's ability to hang in
| there than anything else. I wouldn't, as a result look at the high 8/16 as
a
| "pivot" but instead a pull back into the base. The only thing that can
save
| CECO at this point is a nice tight sideways consolidation on quiet volume.
| If it can do that, then I'd say it's ready to move on. If it stays wide
and
| loose as it's been, then hasta la vista baby.
|
| Katherine
| ----- Original Message -----
| From: "Kelly Short" <kshort@kellyrshort.com>
| To: <canslim@lists.xmission.com>
| Sent: Wednesday, September 04, 2002 8:34 PM
| Subject: [CANSLIM] Wedging example: CECO
|
|
| | Katherine,
| |
| | To continue your point on wedging- would this stock be an example of
| wedging
| | action?
| |
| | http://www.kellyrshort.com/canslim/CECOwedgeexample.gif
| |
| | Kelly
| |
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